Friday, April 13, 2012

Ford Mantra

I have been driving Ford for eight years now. I like the car, but spare parts are stupidly expensive. I wanted to get the windscreen changed, but thought against it when I was told the price. Rs 9000. Compare that to windscreen cost of Skoda Rapid - Rs 3600. Now that is hell lot of difference.

What does that tells us about Ford Business Model? Sell cheap cars. Make money on spare parts and services. Which again brings me to the old dilemma of choice in capitalism - namely you don't have a choice after you make a choice.

I think some rule like cost of all parts put together in the car cannot be more than the price of car would probably help bringing some sanity to the system. If everyone needs to go through this experience to learn it then Ford surely has a very bright future. I think the statement, "You can fool some of the people some of the time, all people some of the time, some people all the time but not all people all the time" is missing a crucial component. The component is people have finite life times. Then the game starts all over again. If new generations don't listen to the old generation, the cycling of fooling can run indefinitely because people continue to be replaced by new people.  

Fundamentally this is all about frequency of choice.

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